Bank Rakyat Indonesia (BRI) has installed a financial risk management platform from Wolters Kluwer Financial Services to adhere to both International Financial Reporting Standards (IFRS) and Indonesian accounting standards (PSAK 50, 55).
"As one of the largest banks in Indonesia, we naturally have considerable volumes to process so finding a solution that is technically sound and could process these volumes quickly and efficiently was a key requirement for us," said Achmad Baiquni, director, Bank Rakyat Indonesia.
"With the Wolters Kluwer Financial Services' IFRS solution, we can now successfully process more than seven million accounts in seven hours. We are very pleased with our decision to work with Wolters Kluwer Financial Services," added Baiquni.
According to Wolters Kluwer, the bank can benefit from calculation and reporting functionalities to cover the amortised cost and fair value accounting, effective interest rate, impairment assessments (collective and individual), hedge accounting (cash flow, fair value and net investment in foreign currency) as well as hedge effectiveness testing models encompassing both the balance sheet and off-balance sheet positions.
By combining both the economic view (IFRS standards) and statutory view (local generally accepted accounting principles - GAAP); Wolters Kluwer Financial Services' IFRS solution means financial institutions can review and report the same balance sheet positions captured from its data. It will also allow for combined accounting calculations in line with Indonesian accounting standards PSAK (50 & 55).
"At the beginning of 2012, the Central Bank of Republic of Indonesia, Bank Indonesia, announced a new set of eXtensible Business Reporting Language (XBRL) regulatory reports for all banks in Indonesia which will see the culmination of financial, operational and risk reporting into one platform," said Steve Thurley, vice president Asia Pacific and Japan at Wolters Kluwer Financial Services.
"With our expertise and knowledge in regulatory and risk solutions, we are well placed to provide support to firms such as BRI around this new requirement," added Thurley.
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